MIT study shows the value of Damco's SupplyChain CarbonCheckTM

December 2009 – MIT Center for Transportation & Logistics (MIT CTL) has now identified Damco’s carbon management approach as potentially up to 25% more accurate than other approaches.

This was announced in a newly published joint study, conducted by Damco and MIT, on supply chain carbon footprint calculations, aiming to develop ways for companies to map their footprint effectively, and identify the most effective opportunities to reduce it.

Erling Johns Nielsen, Global Head of Damco’s supply chain development practice, states, “Accurate mapping of the supply chains, identification and management of CO2 hotspots is critical for companies to be able to take the right actions to reduce their carbon emissions, deliver on CSR strategies and significantly cut costs.

“Companies are faced with increased demands to ensure transparency and common understanding of transportation and distribution carbon emissions. However, there have been no common standards across the 3PL industry for how to calculate a company’s carbon footprint. Damco, through our work with MIT, has now established a new industry benchmark for how supply chain carbon emissions should be calculated in a uniform way.”

The main conclusions in the study are that Damco's approach to carbon footprinting is more comprehensive and accurate than the more generic and predominant carbon footprint assessment when ocean logistics are part of the mix. According to MIT CTL researchers, the generic approach under- or over-estimate carbon emissions by up to 25% at a product level from factory door in Asia to a distribution centre in the United States.

Mr. Nielsen explains, “We compared two methodologies for how to calculate a company’s carbon footprint. One was calculated using publicly available emission standards, which is the most common way in the market, and the other using Damco’s SupplyChain CarbonCheck™ methodology which is based on operational insights, live data and more detailed emission standards and calculations.”

“The work undertaken by MIT to determine the value of the SupplyChain CarbonCheck™ is a further step in our goal to present innovative and valid solutions to our customers in such crucial topics as Green Logistics and Climate Change” says Martin Thaysen, Global Chief Commercial Officer for Damco. “We have an ongoing commitment to create value for our customers and enable them to reduce their carbon footprint and associated costs. This is something we continue to invest in.”